It didn’t take long for the newest player in our health insurance market to realise the prices it was charging were wrong, or at least not likely to make as much money as it might have hoped.
Less than four months ago Level Health became the fourth company offering health insurance to Irish consumers with four plans it promised would make things simpler for Irish consumers.
But as the week ended it became the fourth of the four companies to roll out an increase over recent months with prices climbing by an average of 6 per cent from early next month.
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Just under a year ago, Aviva surprised those in the know when it announced plans to re-enter the market less than a decade after it had previously upped sticks.
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Rising premiums a poor prognosis for health insurance customers
It said it would be guided through the sometimes perilous straits of the Republic’s health insurance waters via a joint venture with old industry hands – including Oliver Tatten (formerly of VHI, Vivas and Glo Health) and Jim Dowdall (most recently the boss of Irish Life Health), as well as health entrepreneur Stephen Loughman.
But it appears the cold, harsh realities of the industry have forced its hand earlier than we might have expected.
It said the price rise reflected the increasing cost of providing healthcare, and suggested they have been driven by two key factors – the Government’s health insurance levy which is rising from the beginning of next month and an increase in the numbers accessing healthcare, leading to higher claims across hospitals, specialist care, and everyday medical expenses.
Company chief executive Jim Dowdall has insisted that while the price adjustment is “necessary” the company’s focus “remains on delivering strong value, innovative benefits, and sustainable cover for our members”.
It is to be hoped that is the case and the company will continue to provide cover at a competitive cost because with price increases being rolled out twice a year in the post-pandemic period by the other providers, people are increasingly hard-pressed when it comes to paying for health insurance. And there is a risk it will become unaffordable for many, only serving to drive prices higher.
